Abstract
In this paper, we use two samples of Latin American MFIs (41 MFIs from 2005-2014 and 102 MFIs from 2010-2014) to show that there is no relation between the percentage of female borrowers in an MFI portfolio and MFI economic outcomes. We verified the return on equity for companies focused on women tend to be smaller. Whilst the cost per borrower is smaller, this is not related to the loan portfolio size. When focusing on the portfolio-at-risk and gender the relation is not found when using a dynamic panel to account for serial autocorrelation, not accepting the hypothesis that women repay better than men. Thus, this paper suggests that MFIs lend more towards women for reasons that are beyond just “economical,” such as empowering women and help poor people, otherwise unable to access credit lines, get loans.
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